Talking points
📱 NFT charity rug?
🚨 Binance downsizing?
💵 Tether rocket to new highs
Quick Market Outlook 👀
As usual, the market is all over the place and no one is too sure what to expect next…
However, there are some areas to keep an eye out for and perhaps they can tell the story over the next few weeks.
It seems that the CME gap was recently hit and now the next move is even more important 👇
So, make sure to have a plan, and only invest what you can afford to lose, especially if you are not sure sure what will happen next.
As usual, check yourself before you wreck yourself.
📱 NFT charity rug?
Have you ever dreamed of achieving influencer status on social media?
That coveted position where you can sway opinions, share the latest crypto news, and uplift the Web3 community? Well, today's newsletter takes a thrilling twist as we delve into the ugly side of influencer status.
Influencers seem to have more power than ever, especially with the incredible social media adoption around the world, but not everything goes well, and in this case, things certainly didn’t turn out well.
Meet Andrew Wang, a prominent influencer in the Web3 space. On a sunny Tuesday morning, Andrew took to Twitter to promote a fascinating NFT collection called Pixel Penguins. In his heartfelt thread, he revealed that the collection was dedicated to supporting his friend "Sarah," also known as Hopeexist1 on Twitter, who had been valiantly battling cancer while burdened with staggering medical bills.
Andrew boldly proclaimed, "I'll put my rep on the line to say this is for real amidst all the scams in our space. Her talent is too precious, and she must survive." Moved by his conviction and the touching story, many Twitter users rallied behind the cause, rushing to mint their very own Pixel Penguins.
Within hours, the collection sold out, and its popularity skyrocketed, with a floor price of 0.07 ETH, or approximately $130 😑
However, as the day wore on, doubts began to creep into the minds of Twitter users. Suspicion hung in the air, and the truth slowly unveiled itself.
Skeptical netizens uncovered troubling tweets from Sarah's account dating back to 2021 and resurfaced allegations of stolen artwork. Some even questioned the authenticity of her cancer diagnosis, suggesting it might have been fabricated to elicit sympathy and donations.
But hey, it was too late. The damage had been done. The Hopeexist1 Twitter account vanished into thin air, leaving no trace behind. Rumors spread like wildfire, and a pseudonymous crypto detective, ZachXBT, revealed that the Pixel Penguin NFT collection had amassed a whopping 61.6 ETH, or roughly $117,000.
To add salt to the wound, within a few hours, 63.5 ETH, almost $119,000, were slyly distributed across two new wallet addresses.
The scammers seemed to have vanished into the shadows, obscuring their tracks even further by depositing funds into a wallet on cryptocurrency exchange OKX.
As of today, the Pixel Penguins' floor price has plummeted to 0.004 ETH, or roughly $0.75. Nevertheless, the collection managed to rake in an impressive 216 ETH, or approximately $403,000, in trading volume on OpenSea 🌊
Remember, my friends, influence comes with great responsibility. Let this tale serve as a reminder to tread carefully in the world of NFTs, where dreams can quickly turn into nightmares. Stay vigilant, support verified projects, and always do your due diligence.
🚨 Binance downsizing?
In the ever-evolving world of cryptocurrencies, even the largest exchanges find themselves navigating choppy waters.
This time, it’s the world's leading crypto exchange and its recent workforce adjustments.
Rumors have been swirling that Binance, home to approximately 8,000 employees, may have downsized its workforce by around 20% (Cue dramatic gasps!). However, hold your horses, because Binance's CEO, Changpeng Zhao, has a different story to tell.
According to a Binance representative, the exchange is not downsizing; they are simply prioritizing talent density and recalibrating their team structure to remain agile and adaptable for the upcoming bull cycle.
They want to ensure that they have the right talent in key positions to navigate the crypto landscape successfully. In fact, they're actively recruiting and planning to fill hundreds of vacant positions. Talk about keeping the ship sailing!
While the exact reasons behind the reported layoffs remain uncertain, there are several factors that might have influenced the decision. The dreaded crypto winter and unfavorable market conditions have potentially impacted Binance's revenue and profitability, which could have prompted the need for adjustments in their workforce.
Furthermore, Binance's rapid expansion in recent years might have played a role. As they launched new products, expanded operations, and entered new markets, periodic evaluations of their workforce become necessary to optimize operational efficiency. It's all part of the growth game!
Now, Binance isn't alone in facing the repercussions of crypto's rollercoaster ride. Many other platforms have faced similar challenges, with job cuts becoming a somber reality.
Coinbase, for instance, waved goodbye to around 950 jobs, which constituted 20% of its workforce. Kraken, following Coinbase's lead, had to bid farewell to 30% of its employees, amounting to roughly 1,100 people.
Even Crypto.com had to adapt to the market conditions by letting go of approximately 20% of its corporate workforce, which accounted for nearly 1,000 individuals. And let's not forget Barry Silbert's Digital Currency Group, which had to trim its headcount by almost 13% to weather the crypto storm.
So, as the waves of the crypto market continue to ebb and flow, exchanges are adjusting their sails to navigate the shifting tides.
It's a reminder that in the wild world of cryptocurrencies, even the mightiest of businesses must adapt to survive.
💵 Tether rocket to new highs
It seems someone forgot to turn the printer off because Tether stable coin (USDT) has smashed through the barrier and reached an incredible all-time-high (ATH) market capitalization of over $83 billion!
In troubling times, where other stable coin issuers find themselves caught in the turbulent waters of regulatory challenges, Tether continues to ride the crypto tide, dominating the market. Even cryptocurrency exchange giant, Binance, acknowledges the outstanding performance of Tether.
Changpeng "CZ" Zhao, the CEO of Binance, took to Twitter to draw attention to Binance USD (BUSD), a fully regulated stable coin issued by Paxos. CZ highlighted that BUSD, currently capped at $23 billion by the New York Department of Financial Services (NYDFS), pales in comparison to Tether's astounding growth. BUSD's market cap currently stands at $5 billion, while Tether sets sail with its triumphant ATH market cap.
The NYDFS previously directed Paxos to halt any new issuance of BUSD in February, citing violations of security laws. This setback has hindered BUSD's progress, allowing Tether to soar high above its competitors. Circle-issued USD Coin (USDC), once a contender, now also struggles to maintain its market share against the mighty Tether. With a market cap of $28.8 billion, USDC finds itself trailing by over $50 billion.
Ahh, what a difference a year can make, ayyy?
In June 2022, USDC's market cap was tantalizingly close to that of Tether, reaching an ATH of $55.8 billion. Alas, the prolonged bear market of 2022 took its toll on both stable coins, causing a decline in their market caps. Yet, like a true buccaneer, Tether has managed to bounce back with even greater dominance, while USDC's market cap has been slashed nearly in half.
But what lies beneath the surface, you may ask? The decline in market share for other stable coins can be attributed to regulatory scrutiny from United States regulators and the U.S. banking crisis.
After the NYDFS put the brakes on BUSD's issuance due to security violations, the market cap of BUSD took a swift dive as users scurried to convert their BUSD to other stable coins.
Likewise, USDC faced a tempest of its own when the Silicon Valley Bank collapsed, revealing that the stable coin issuer held approximately $3.3 billion in reserves. Panic ensued, and the U.S. dollar pegging of USDC temporarily faltered. Though USDC managed to regain its peg the following day, the ordeal left its mark on the market cap, causing many users to jump ship and convert their USDC to other stable coins in fear of a total crash 📉
Again, we see that there are constant highs and lows within the crypto world, and today an ATH is certainly a positive for Tether, who truly are having a remarkable time, but what impact will this have on the rest of the market? As usual, only time will tell.
